New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-22
THE FIDELITY'S DOORS SHUT
THREE OF ITS OFFICIALS UNDER ARREST.
LONG OUTCOME OF THE GIGANTIC WHEAT DIAL
EFFECTS OF THE BANKS COLLAPSE
fpY TELEGRAPH TO THE rRIDuNk1

LONG OUTCOME OF THE GIGANTIC WHEAT DkAL-
EFFECTS OF THE BANKS COLLAPSE
(nY TELEGRAPH TO THE raDushl
CINCINNATI, June 21.-The result Of the wheat
panic in Chicago last week was manifest hore to-
day in the closing of tho Fidelity Bank by order Of
the Government examiner and the arrest Of its vice.
president, E. L. Harper. and the cashier. Ammi
Baldwin, and his assistant. Benjamin f. Hopkins,
for violation of the banking laws That was fol-
lowed by Harpers assignment for perhaps
49, 600, OOO What the assets and liabilities Of the
bank and Harper will be cannot now be stated.
There are plenty of wild rumOrs flying about.
Those who should know most about the probabill.
ties, however, look very grave and intimate that
when the worst Is known 1t will be very bad. SO
far the bank Is concerned, Harper, together with
O couple of his friends, who have nothing outside
of. their stock, are supposed to own q majority
Of the stock. The other stockholders are. -
rule, well able to stand the necessary
assessment of the amount of their stock outside
their original holdings Carefu. Inmates are that
depositors will receive at least twothrds. but that
the stock will all be wiped out 1t is believed that
there arc more sensational developments to come.
An apparently we'll founded rumor tonight is 10
the effect that the city will lose 5000 900 deposited
In the Fidelity in o private name.
The Fidelity Bank was started by the most con-
servative Of tnanciers, men who were cold as ict-
bergs IN their intercourse with the public. 1t did
not do we'll and was In fact unpopular. At that
time E. L. Harper was heavy stockholder and the
heaviest depositor in the Third National. He was
always using money and IN big lots. It was
charged after he had left there that he has checked
out as high as 100000 at q time when he
had no deposit to his credit But his
and the bank suffered no loss. He had the cashier
and assistant his side and was thus enabled to
do what would otherwise have been impossible:
Just when the Fidelity was about to be abandoned
Harper came in with plan of reorganization. lie
took $500 900 of stock, brought fresh blood with
him. and the bank was systematically and success
fully doomed by methods usual to a real estate
agent but which were looked on In dismay by con-
servative bankers Its capital was increased 10
st IT haS
enmty of some rivals and the hearty good VIII Oh
nOne
There does not seem to be any doubt now as 10
who was the head, the brains and the
money-bags of the Chicago wheat deal.
One singular development to-day ,Uss vas the h,,
Joseph Wiltshire to +. L. Harper of valuable pro-
| erty and the fling of deed to-day by Il. L. Har-
to the Fidelity Bank eS USan thi Sesd a
decided deed the same to A W. Wiltshire, the wire Of
the wheat deal or similar schemes was projected
The last statement, made May. IS. showed the
dvlduaI deposits. S. 3s7 e47 and on excellent au;
thority it stated tonight that the Fidelity should
have nearly $l.5OO,o00 cash on han hand while
sSan'iy sSm The 'heS loans navs were $4aosoa From
another source, but one removed from
ton shows that the banks cash Was in round ig-
ures 81 900 short This indicates that the fall
ure will be very bad Large quantities OF cur
| Tency have been ordered from New-York tonight,
presumably to guard against any run on the other
| banks that might possibly be made SO far. how.
ever. there has been no symptop or anytnlng Oh
| There was much excitement on Change to-day.
One broker declared 1t would be found that Harper
dropped in the Wheat deal. Another knew that
| Harper had certified checks for 81, 6OO0 900 within
| the last month, about which the president and d.
rectOrs knew nothing
| The news Of tho closing OF the doors OF the Fidelity
National Bank OF Cincinnati caused excitement hero
as the failure did Unexpectedly. The wheat
market The Produce Exchange was active and heavy
dealings took place. but with panieky tone and with
| no failures growing out OF the collapse OK
S.s oSs. *. % cents in per June S PpSns and
closed at recovery OF The other months fell
Fuldeals Of the will be found In the grain sum.
mary md the detailed reports . -.
difhcutes under which Vice: President Harper wa:
Bank is the principal correspondent in this city
Fds + Was sasa ss ous: S
were discovered would aggregate than $4,000
ssncancs aaSs, 'to'is to tue
standpoint index TO the general financial condition
OF the country inasmucn as proeeeaea WHOLLY ,o snt
officer ,,, - ....
menI from Justice Donohue against the property In this
stale OF Rosenfed Brothers. OF Chicago on cla Tor
SOL Ol2 so on of transactions IN wheat deal
LOWEST IN A QUAKER OF A CENTURY
July WHEAT AT CHICAGO DROPS TO 6Sa4 CENTS
| EFFECT OF THE FAILURE OF THE FIDELITY BANK.
CHICAGO. June 81 Especial. 1.-The wise ones
said this NOR aing that it would be an of day on
| the board july wheat the curb opened at O9a4
cents but soon touched 20 cents. The same option
on the regular board, which closed last night at I0s
,ents opened at 69ls cents. moving up quarter OF
a cent in the first five minutes and then reacting
slightly There depression in the atmosphere OF
the wheat pit. July Is near at hand, and somebody
must take the stuff and pay for it, With heavy sell
ing by large holders the impression seemed TO be that
The market was liable to ship at any moment. August
wheat sold at 71s cents and September at 74os cents
The market developed genuine case oil dumps
bel ore noon. 1t reported that the Fidelity BANK
of Gin ,innati closed, and continuation OF inns did
not tend TO reassmre the FAINT hearts. Following
close upon this intelligence came the depressing
rumor that many drafts which certain commission
houses had drawn country customers 10 cover
margins were being returned protested.
The sales of wheat during the morning were hesvy,
tbs hanks which have been interested in the recent
bull movement unloading heavily. The larger Trans.
actions were made at 697s cents The sensation OF
the dav was the news from Cincinnati touching the
Fidelity Bank. The bears utilized this incident to he
utmost When questioned regarding the possible
eHect ON Chicago, N. b. Ream said !" don't think
the closing of the Fidelity Bank will now have any
effect on any firm or any banking institution; l do
not anticipate any serious complications in Chicago
growing out OF the denoument
Another prominent trader said The closing OF the
Fidelity is but an incident. No more importance
shonld be attached to it than to the failure Of big
firm. NV impression is that the effect has already
| been discounted"
How will Kershaw settle ~ was the question many
times heard on the ooard to-1ay. The question was
answered frequently in about this fashion II
| EggIeston Is found to be Liable. and hershaws
aI,h Kersbaw onght 70 pay at least 90 cents on
the doI.r il Eggleston is not liable very few OF tho